Blog: Dave LeggettThe consolidation game

Dave Leggett | 9 February 2016

Consolidation in the supplier sector continues apace. Companies are positioning themselves to be well placed for future growth; that means reviewing product portfolios, technology capabilities, market geography and degrees of specialisation. It can lead to M&A activity and it can also mean the divestment of company business units, too.

When it comes to interiors, the creation of Yanfeng Automotive Interiors (YFAI), a joint venture between Yanfeng Automotive Trim Systems Co Ltd and Johnson Controls is a particularly interesting one. Johnson Controls, remember, is looking to spin off its automotive interiors business and recently announced a planned merger with Tyco, which it sees as an important part of its strategic re-invention. The auto interiors business, meanwhile, will head off on its own and the Yanfeng JV will be an important element there. The JCI split should happen around the middle of this year. Well, that’s the plan.

On the subject of that big YFAI JV, we have an interesting interview with Han Hendriks, Vice President Advanced Product Development & Sales at YFAI to learn more about the company's growth prospects. There are also some insights into what greater automated drive may mean for interior design. I really do wonder how the time in the cockpit and less time needed for driving is going to play out. Personally, I am worried by the ‘halfway house’ scenario and the potential for distraction when there should really be some attention paid to driving and the automated systems don’t yet do everything. That cat video was just soooo funny, officer.

Sectors: Components

Companies: Johnson Controls

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